English translation of Article 19 of the Swiss VAT Act 2010

This
page contains an English translation of the below Article of the
revised Swiss VATA 2010 and is part of a web based Swiss VATA 2010
commentary published in German. Should you require qualified
written legal advice on cross-border transactions potentially triggering
Swiss VAT from a Swiss VAT lawyer please do not hesitate to contact: Harun Can

Article 19 of the Swiss VAT Act 2010

Plurality of supplies

Mutually independent supplies are treated separately.

Two or more mutually independent supplies that are merged into one unit or are offered as a combination of supplies may be treated as a unit according to the predominant supply if they are made against an aggregate consideration and the predominant supply represents by value at least 70 per cent of the aggregate consideration (combination).

Supplies that are economically closely related and interact with one another in such a way that they must be regarded as an indivisible whole qualify as a single economic transaction and must be treated according to the character of the aggregate supply.

Ancillary supplies, in particular packaging, will be treated for tax purposes in the same way as the main supply.

Special tools purchased or made by a taxable person specially for the performance of a manufacturing contract constitute part of the delivery of the goods manufactured with them. It is irrelevant whether the special tools:

are invoiced to the recipient of the supply separately or are included in the price of the products;

are delivered to the recipient of the supply or to a third person designated by him or her, or not after performance of the manufacturing contract.

Article 19 of the Swiss VAT Ordinance 2010 Section 2 of the Swiss VAT Act 2010 is not applicable for determining whether the place of supply lies in Switzerland or abroad in the case of a combination of supplies.